QD = 2,000 – p
QS = 200 + 2p.
At price of Rs. 650, what will happen?
Answer & explanation
Correct answer: option 2
the correct answer is Option 2: Excess supply amounting to 150
At price = 650,
Qd = 2000-p = 2000 – 650 = 1350 and
Qs = 200 + 2p = 200 + 2(650) = 1500.
Supply is greater than demand, that is, excess supply to extent of 150(1500-1350)